Land Securities profit lifted by valuation, retail

RazakMusah

LONDON--Land Securities Group PLC (LAND.LN) said Thursday it doubled its full-year pretax profit, mainly due to significant valuation gains and a near fully-let retail portfolio, and it expects the good performance to continue.

The U.K.'s largest Real Estate Investment Trust by market capitalization posted pretax profit of 1.11 billion pounds ($1.87 billion) for the ended March 31, 2014, compared with GBP533.0 million a year earlier.

Basic net asset value, or NAV, per share was up to 1,069 pence from 959 pence a year earlier, and adjusted diluted NAV per share, which is a key valuation measure, rose 12.2% to 1,013 pence from 903 pence.

Chief Executive Robert Noel said Land Securities is reaping the reward of its bold strategy to develop early and speculatively in central London.

"This strategy, together with a resurgent London market, has led to significant valuation gains, while our near fully-let retail portfolio has delivered strong cash flow and increased revenue profit," he said.

"Overall, market conditions for property are positive and Land Securities is well positioned. Our strategy is clear, our people focused, our activity relentless and our business stronger. I am confident of continued good performance," Mr. Noel said.

The company recommended an increase in its final dividend to 7.9 pence from 7.6 pence a year earlier.

Land Securities shares closed Wednesday at GBP11.05, valuing the company at GBP8.73 billion.

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